Startup Bangladesh, the flagship venture capital company of the ICT Division, has invested in Bimafy, a digital Insurance platform in Bangladesh. An agreement for a Tk1 crore investment was signed between the organisations in Dhaka. NM Zeaul Alam, chairman of the board of directors of Startup Bangladesh and senior secretary of the ICT Division, was present at this time. Md Moinul Kabir board member of Startup Bangladesh and secretary, Legislative and Parliamentary Affairs Division; Ranajit Kumar, executive director of Bangladesh Computer Council, and board member of Startup Bangladesh; Managing Director of Startup Bangladesh Sami Ahmed, Head of Portfolio Investment Hasan A Arif and Chairman of Bimafy Arnab Paul and Managing Director of Bimafy Alvi Nizam Nafi were also present. Read: Startup Bangladesh to invest Tk5 crore in re-commerce platform SWAP Since 2019, Bimafy has been working on the digitalisation of insurance service facilities to ensure that their customer services in the insurance sector meet the "global standard." Customers can choose and buy health insurance, accident insurance, travel insurance and motor insurance from insurance companies of their choice on the Bimafy app and website. Bimafy also works with multiple companies to provide a variety of corporate solutions.
Bangladesh Prime Minister Sheikh Hasina today (December 06, 2022) officially opened Bangladesh Special Economic Zone (widely known as the “Japanese Economic Zone”) at Araihazar in Narayanganj. She joined the event virtually from her official residence Ganabhaban in Dhaka. According to Bangladesh Economic Zones Authority (BEZA), the Japanese Economic Zone would draw USD 1.5 billion investment and create more than one lakh jobs. Forty foreign companies, including 30 Japanese, have expressed interest to invest there, BEZA said. Noting that an excellent investment climate prevails in Bangladesh, PM Hasina said, “I think Bangladesh is the most attractive destination for investment. We are offering the highest (investment) opportunities and facilities.” Read: Women entrepreneurs can avail special opportunities in economic zones: PM She also said that women entrepreneurs can avail special opportunities at the country’s economic zones. “If women entrepreneurs come forward, we will give them special opportunities. Separate plots will be provided for them.” Sheikh Hasina said her government has been working for the overall development of the nation through planned industrialization, while protecting arable land and the environment. The PM said foreign entrepreneurs are also expressing interest to make investments in the country. “In terms of geographic location, Bangladesh is perfectly positioned to be a bridge between the East and the West,” she said. Read: Stop arms race, use resources for health, education: PM to global leaders Sheikh Hasina said her government has been strengthening connectivity with South Asia and Southeast Asia – two most densely populated regions with a large market of 300 crore people. Besides, the government has increased the purchasing power of people – a market of 17 crore people, she added. The PM said the government is also offering special facilities for young entrepreneurs so that they can make investments in the economic zones. She opened the commercial operation of the Japanese Economic Zone, being developed on 1000 acres of land under the joint venture of Bangladesh and Japan. Executive Chairman of BEZA, Shaikh Yusuf Harun, in his welcome speech, said the inauguration of Bangladesh Special Economic Zone would open a new era for attracting Japanese and other foreign investments to Bangladesh. Read: Bangladesh a role model for women's participation in UN peacekeeping: PM Hasina He said Singer, a renowned company, has already started the construction of its factory in the economic zone. Harun also said two Japanese companies were going to sign agreements after the opening ceremony to set up their factories in the economic zone. Japanese Ambassador to Bangladesh Ito Naoki and President of Sumitomo Corporation Masayuki Hyodo also spoke on the occasion. BEZA and Japan’s Sumitomo Corporation are jointly working to develop the economic zone. The process of the joint venture started with Prime Minister Sheikh Hasina’s visit to Japan in 2014. Read: Karnaphuli Tunnel first such project in South Asia: PM Hasina
The country's business leaders have urged against lifting the cap on interest rate arguing that it will affect investment. They also agreed with the Bangladesh Bank governor who insists that it is not the right time to lift the limit. Speaking at a conference here on Thursday BB Governor Abdur Rouf Talukder said they are waiting for a good time to withdraw the interest cap. Md Jasim Uddin, president of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) opposed any increase in the rate. "If the interest rate suddenly increases, the investors will plunge into trouble. The manufacturing sector investors need to sell their products in a competitive global market, he said on Friday. Read more: BB extends tenure of relaxed ‘risk-weighted’ funding in new investment He told UNB that the interest rate is still high in Bangladesh compared with many other competitive countries, which will have to be taken into consideration before raising the interest rate. Executive president of the Bangladesh Knitwear Manufacturers Association (BKMEA) Mohammad Hatem said entrepreneurs are suffering losses due to the gas crisis. In this situation increasing interest rate will not be investment friendly. He said Bangladesh has to decide whether it wants to bring in investment or not. Higher interest rate will create uncertainty in many sectors, already suffering from the pandemic and the Russia-Ukraine war. The issue of the interest cap came up Thursday in the opening session of a three-day annual development conference organised by the Bangladesh Institute of Development Studies (BIDS) at a city hotel. Read more: BB revises cluster credit guidelines to boost small enterprises Speaking at the event BB governor informed that the central bank has already relaxed the interest rate on consumer loans. Regarding the foreign currency exchange rate, Rouf said the BB will allow the market force to determine it.
Bangladesh Bank (BB) has moved to encourage investment in new businesses including start-ups, private capital, natural resources, real estate and infrastructure, according to an official circular from the regulator. As part of this, the BB on Wednesday extended reduced risk-weighted (interest) or Determining Risk Weighted Asset (RWA) to 100 percent instead of 150 percent till September 30, 2024. Such relaxation has been taken to create the opportunity of funding in reduced cost to grow new businesses and investments, which will make the economy vibrant. Read more: Government working on IMF’s conditions to get $4.5 billion loan The central bank reduced the risk weight on September 29 September 2020 during the adverse impact of the Covid-19 pandemic on the economy. Later, the tenure of relaxed weighted for venture capital and alternative investment sector was extended several times. As a result, the low-cost fund has become available for start-ups, natural resources, and the real estate sector, to create new entrepreneurship opportunities. Read more: Bangladesh’s forex reserves now $34.3 billion, as per IMF formula it’s $26.3 billion
State Minister for Foreign Affairs Md Shahriar Alam on Friday said Bangladesh would welcome visible Portuguese investments and expertise in the blue economy, including for exploring the potentials for offshore wind power generation. Portugal’s large-scale and judicious investment in renewable energy over the past years has largely cushioned it from the present energy crisis around the world, he said while speaking at a seminar as the chief guest. “We have many untapped potentials for economic cooperation between our two countries. We believe that there are opportunities for further expanding two-way investments in each other’s countries,” said State Minister Alam. Bangladesh Institute of International and Strategic Studies (BIISS) organised the seminar titled “Bangladesh-Portugal Relations: Quest for Deeper Bilateral Cooperation”as part of its Eminent Person Lecture Series (EPLS). Dr Francisco André, Secretary of State for Foreign Affairs and Cooperation, Republic of Portugal, attended the seminar as a guest speaker and Shabbir Ahmad Chowdhury, Secretary (West), Ministry of Foreign Affairs, was present as a discussant. BIISS Chairman Ambassador Kazi Imtiaz Hossain chaired the programme and its Director General Major General Sheikh Pasha Habib Uddin delivered the welcome remarks. Bangladeshis face certain constraints with regard to visas - especially for their family members - in the absence of any Portuguese diplomatic or consular mission in Bangladesh. Read: EU’s EBA Scheme for LDCs: Portugal terms Bangladesh best success story “We are assured by Dr. André that his administration will work towards finding a pragmatic solution to the issue in the near future. This will indeed have a huge qualitative difference in the substance of our bilateral ties, he said. Bangladesh counts on Portugal to speak for Bangladesh within the European Union. As a 27-member body, the EU has many competing priorities, and it certainly helps to have a reliable partner within this critically important institution for Bangladesh. “It is reassuring for us that Portugal is favourably disposed to Bangladesh’s obtaining the GSP+ facility in the EU market beyond 2029. I am certain that Portugal will also play a catalytic role over time in realizing our efforts to take our engagements with the EU towards a more strategic direction,” said the State Minister. He urged Portugal to maintain its voice and support for humanitarian assistance, justice and accountability, and safe and dignified repatriation of the Rohingya. Bangladesh thanked Portugal for its forward-leaning approach to climate action, including for its support for the ‘loss and damage’ agenda. “We look forward to working with Portugal on conserving and protecting our oceans from climate change impacts. We have taken due note of Portugal’s desire to serve the cause of international peace and security as an elected member of the UN Security Council in 2027-28,” he said. The State Minister laid emphasis on continued investment in people-to-people connectivity between the two countries. Read: Friendly conditions to be created for Bangladeshi immigrants in Portugal: Francisco Andre The two countries will be celebrating the 50th anniversary of diplomatic relations in 2024. “We have agreed to draw up plans from now on to commemorate the occasion through befitting events,” Alam said. He said the renewed journey and engagements that they have started with Portugal this year will mark the beginning of a “mature, vibrant and multi-dimensional interface” in the years to come. The speakers shed light on the historic tie between Bangladesh and Portugal which can be traced back to the 16th century. They highlighted the growing trade relations between these two countries and emphasised on advancing the current economic relationship by exploring new avenues. The speakers also stressed on expanding the overall bilateral relations in the diverse areas that include renewable energy, green transition, sustainable development, manpower export
UNICEF is launching a new climate financing initiative to enhance countries' climate resilience and disaster preparedness for children and youth and bolster protection for children from the impacts of future climate-related disasters. The Today and Tomorrow initiative is an integrated climate change finance solution that, for the first time, combines funding for immediate climate resilience and risk prevention programmes for children today, with innovative use of risk transfer finance provided by the insurance market for cyclone disasters tomorrow. The combined financing platform is designed to help countries address the current and growing impacts of the climate crisis while preparing for future emergencies and rapidly responding to them when they occur. “The risks of climate change are no longer hypothetical. They are here. And even while we work to build communities’ resilience against climate disasters, we have to become much better in pre-empting risks for our children,” said Karin Hulshof, UNICEF deputy executive director for Partnerships. “We know more climate disasters are in the making. We just do not know where or when they will hit.” Children and youth are a critically vulnerable population group that is among the most affected by disaster risk and climate change, including the effects of extreme weather events such as cyclones. Last year, UNICEF’s Children’s Climate Risk Index estimated 400 million children (nearly 1 in 6 children globally) are currently highly exposed to cyclones. In its initial three-year pilot, UNICEF’s Today and Tomorrow will focus on eight countries in four global cyclone basins – Bangladesh, Comoros, Haiti, Fiji, Madagascar, Mozambique, Solomon Islands, and Vanuatu. UNICEF is raising $30 million for the initiative and is calling for additional private and public partners to take action and join UNICEF in helping to close the intensifying humanitarian financing gap for disaster protection for children and youth. Read more: Heatwaves to impact almost every child by 2050: UNICEF report Climate harm in childhood lasts for life and perpetuates and deepens inequality and poverty across generations. However, the unique needs of children are not directly addressed by existing Risk Transfer mechanisms. This leaves a global humanitarian financing gap, or “Child Protection Gap,” that encompasses hundreds of millions of children and youth. Cyclones and the disasters they trigger, such as floods and landslides, represent the fastest-growing category of climate-influenced disasters and are a major cause of losses and damages worldwide. UNICEF’s research has shown that investments that reduce exposure to and negative impacts from cyclones and other hazards can considerably reduce overall climate risk for millions of children. UNICEF’s Today and Tomorrow is the first pre-arranged and event-based climate disaster risk financing mechanism that specifically targets this Child Protection Gap, with full support for the Tomorrow portion of the risk transfer instrument, secured from the German and UK governments under the newly launched G7-V20 Global Shield against Climate Risks. Read more: Children want govt investment in education, health, protection: UNICEF
Bangladeshi businesses and their Singaporean counterparts discussed business prospects, trade, and investment opportunities between their countries at an international business networking event in Dhaka Wednesday. They also spoke about how the firms of both countries can expand businesses for bilateral interests. A delegation of the Singapore Business Federation (SBF), the apex business chamber promoting the interests of Singapore businesses in trade, investment and industrial relations, is now in Bangladesh to understand the country's investment climate. To connect local businesses with global ones to boost bilateral growth and opportunities, Bangladeshi Charter Accountancy firm Howlader Maria and Co (HmAC) and, organised the event at a Dhaka hotel. Read more: Bangladesh shares its aspirations with Singapore to emerge as facilitator of regional connectivity Maria Howlader, founder and CEO of HmAC, Soo Wei Chai, executive director of Global Business Division and Young Business Leaders Network of SBF, business leaders, chief executives officers of different companies, and business firms from both countries were present at the meeting. Businesses from Singapore have great opportunities to invest in Bangladesh, including in information technology, pharmaceuticals and hospitality as the country offers attractive tax exemptions and other facilities, participants from local businesses said. The Singapore delegation from multiple sectors shared their investment plans and tried to find out business opportunities in different sectors such as IT, agriculture, and construction. They also said Bangladeshi businesses can also expand their businesses by investing in Singapore. Read more: Singapore upbeat about Bangladesh’s economic potential Thanking the participants from both Singapore and Bangladeshi business houses, Maria said, "The networking event represents how we feel about doing business in Bangladesh and matching business to business" for further growth and expansion. Maria said Bangladesh has many inspiring stories of growth and development, with a strong track record of growth and development even amid rising global uncertainties.
The Ministry of Finance has extended the tenure of banks’ additional investment in the capital market for another year. The Financial Institutions Division of the ministry extended the deadline till December 31, 2023. Last Monday, the Deputy Secretary of the Financial Institutions Division of the Ministry of Finance issued the notification. The notification was sent to Bangladesh Bank yesterday. Read more: Despite central bank's green light, banks shy to invest in capital market Time has been given till December 31, 2023 to bring down the additional investment of banks including BDBL in the share market (collectively or individually in the case of holding shares of other companies) to the prescribed limit as stated in the Bank Companies Act, 1991. Besides, in the case of holding the shares of other companies within that extended period, in the case of holding the shares of any company collectively or individually, the over-investing banks cannot increase the respective investment (in the ratio) based on August 31, 2022 in any order.
When it comes to investing, people usually look for effective strategies to make money. Some investors choose real estate, and mutual funds and others prefer stocks or bonds. Stocks can be a great choice for both short-term and long-term investments. Investing in stocks not only gives you the scope to make money but also makes you the owner of a part of a company. There are a few things to consider when selecting stocks for any company. 10 Essential Criteria to Consider for Selecting Stocks For non-technical common investors, understanding stock market fluctuations is difficult. If you want to buy a stock, you must keep in mind some factors. Here are 10 factors you need to know, according to experts. Company Background Analisis Buying shares in a company means buying partial ownership of that company. So proper review of the qualitative aspects of that company is very important. You will need to check whether the company’s products or services are popular with its customers. Besides, don’t forget to check who is managing the company. Read More: Shares vs Bonds: What is the Ideal Investment Opportunity You can do a Google search or ask people you know about how the company’s managers are—whether they are trustworthy as your partner or not. Also, look for what is the competence, integrity, and innovation of the company’s managing director and other senior officers—their qualifications, training, business success, and more. Price-to-Earnings (P/E) Ratio The price-earnings ratio is a measure of how many times a company’s shares are selling for its earnings. If the earnings per share of a company are Tk5, and the market price of the share is Tk45, then the price-earnings ratio will be 9. This means that if the company distributes all of its earnings as dividends, it will take 9 years to recover the invested money. But if the market price of the share was Tk 100, then the price-earnings ratio or PE ratio would be 20. That is, if the company’s income stream remains unchanged, it will take 20 years to return the investment. The market average P/E ratio is 20-30. The lower the PE ratio, the lower the risk of the investment. Read More: Share Market Investment Guide: How to Invest in Stocks Net Asset Value Per Share Before buying a company’s share, check asset value per share. There should be an adjustment of the market price with this. However, unless the company goes into liquidation, the investor does not really care about the asset value. Only shareholders can get a portion of those assets when the company is bankrupt. In this case, the bank loan and other dues are paid off before the sale price of the asset. After that, anything left over is distributed among the shareholders. Earnings Per Share Check the Earnings Per Share (EPS). However, it depends on the company. The more it is, the better. Higher EPS means higher dividend potential. If the EPS is low, the dividend potential is also low. Read More: Saving vs. Investing Money: Know the Pros and Cons. Capital Utilization Efficiency of The Company A company that can invest more of its capital in more profitable projects is expected to benefit its shareholders. On the other hand, if a company invests a lot of capital in a less profitable project, its profits and share price have less possibility to improve. For example, banks that have invested more capital in mobile banking or digital banking projects over the last 10 years have done much better in terms of profits and share prices than banks that have invested in stock brokerage projects. Balance Sheet Generally, companies whose financial debt is much higher than their total assets (over 60-70%) have a higher risk of losing their shareholders’ capital. So, one should be careful while investing in such companies. Read More: Is Sanchayapatra a Good Investment in 2022? Total Number of Shares Before you buy stocks of any company, check their total number of shares and see how much it floats. According to the demand-supply formula, if the number of shares is low, its price is more likely to increase. On the other hand, if the number of shares is more, it is more readily available in the market. In addition to that, it is better to buy shares that are traded regularly. Because if you need money on an urgent basis for any reason, it is possible to collect money easily by selling shares. But if you invest in shares that are not traded regularly, it is not possible to withdraw the investment on an emergency basis. The Ratio of Authorized Capital to Paid-Up Capital Issuance of bonuses and right shares is quite difficult if these two capital amounts are close. In this case, the company should increase the authorized capital earlier. Investors with a particular inclination towards bonus dividends should take note of these factors. A rule of thumb is that paid-up capital can never exceed authorized capital. Read More: Plot vs Apartment: Which is the Better Investment Option? Dividend Yield The market value of the shares may be higher than the face value in most cases. Hence the dividend rate does not indicate the actual return. The dividend yield is the exact return of shares, which is the percentage of dividends received on the investment based on market value. The dividend yield ratio is obtained by multiplying the declared dividend by 100 and dividing it by the market price of the respective shares. The higher the yield, the higher the investor’s earnings. Track Record Check the company’s last 3-4 years' track record. See how much it pays in dividends. Also, check the annual average price and try to buy shares close to this price. Read More: Is Gold a Good Investment in 2022? Final Words So far, we have shared what to consider before buying stocks or shares. When buying a stock, remember profit must be ensured at the time of buying, not at the time of selling. That is, if you can buy shares at a good price, there will be a good chance of good profit. If you buy a share at a high price, the profit potential will decrease a little. Additionally, it should be remembered that hasty decision decisions are not good in the share market.
The government of Bangladesh has projected to upgrade total investment in the country to 33.6 percent of the total GDP on a mid-term basis (in the 2024-25 fiscal year) aiming to overturn the economic shock from the COVID-19 pandemic and the Russia-Ukraine war. In this investment, the private sector will contribute 26.65 percent of the GDP while the public sector will contribute 7.0 percent. According to an official document, to attain the gradual acceleration of the GDP, private investment expansion is necessary along with public investment. The estimated investment target for 2023-24 fiscal year is 32.8 percent with 25.91 percent from the private sector and 6.9 percent from the public sector. Read more: Lack of financing, policy support causes of weak startup growth in Bangladesh: Speakers For the running 2022-23 fiscal year, the investment target is 31.5 percent with the private sector contributing 24.81 percent and the public sector adding 6.7 percent. The estimated GDP target for the current 2022-23 fiscal year is 7.5 percent while the target for 2023-24 and 2024-25 is 7.8 percent and 8.0 percent respectively. The document stated that the GDP of the last 2021-22 fiscal year was 7.25 percent while in 2020-21 it was 6.94 percent. The growth in agriculture, industry and service sectors have been estimated at 5.0 percent, 8.8 percent and 7.9 percent respectively for the 2024-25 fiscal year. Read more: Bangladesh's strong growth could be at risk without urgent climate action: World Bank The official document said that About 7-8 percent real GDP growth is targeted over the medium term based on the assumptions of the gradual recovery of the world economy from the impacts of the COVID-19 pandemic and the early resolution of the Russia-Ukraine conflict. The document put emphasis on private investment, saying that it needs to be boosted along with public investment to increase capital accumulation. Total investment in fiscal 2020-21 stands at 31.0 percent of the GDP where the contributions of private and public sectors are 23.7 percent and 7.3 percent respectively. “But this level of investment is not adequate to achieve around 8.0 percent growth over the medium term,” the document said. Read more: Tier-2 cities like Gazipur, Narayanganj must promote urban growth outside Dhaka: World Bank It also mentioned that public investment could not be increased to an expected level due to the lack of capacity in implementing the annual development programme. Recognising this, the document stated the government has taken steps to bring about some structural changes at both project design and implementation levels. It mentioned that a potentially huge global supply shock that may reduce growth and push up inflation is affecting the post-COVID-19 recovery. “Russia’s invasion of Ukraine and the economic sanctions on Russia that followed put global energy supplies at risk,” it said. Read More: More development projects planned to support trade, investment The document said that Russia supplies around 10 percent of the world’s energy, including 17 percent of its natural gas and 12 percent of its oil. The jump in oil and gas prices will add to industry costs and reduce consumers’ real income, it added, saying that record-high inflation is currently evident, which also affects Bangladesh. The total investment in 2018-19 fiscal year was 31.6 percent of the GDP where the share of private and public sector were 23.5 percent and 8 percent respectively. The investment in 2019-20 fiscal year was 20.8 percent of the GDP (private sector 12.7 percent and public sector 8.1 percent). Read More: “Bangladesh can be the right place for investment from Brunei” "But to attain 8 percent GDP in the mid-term basis” such investment is not adequate, it said. The document mentioned that the government has taken various reforms measures like simplification of the fund release process for accelerating the rate of ADP implementation. It mentioned that the overall agriculture sector, especially foodgrain, vegetables, livestock and forest resources was less affected due to coronavirus. It said that disbursement of agriculture loans played an important role in the satisfactory growth of the agriculture sector in Bangladesh. Read More: Shares vs Bonds: What is the Ideal Investment Opportunity